Decals, no material

Hi everyone.
I've been converting my TGE 1.5 project to T3D. It's been going great, but I've run into a little snag. First let me say that I've read the tutorials on decals (the click to move tut) and looked at the foot print DecalData.

I have a material created.

singleton Material(DecalMaterialTest1)
{    
   diffuseMap[0] = "art/DecalTest/testMaterial1";
   emissive[0] = true;             	
   glow[0] = "1";
};

and I follow the instructions to create the DecalData. It works, I see the decal in game. Save. Quit. Notice the change in the managedDecalData.cs file.

datablock DecalData(NewDecalData)
{
   Material = "DecalMaterialTest1";
   textureCoordCount = "1";
};

But when I start the level the decal is showing as "No Material" or the warning msg.

I've tried adding the matriel manually using the

decalManagerAddDecal( "253.722000 -119.853745 345.676239", "0.000000 -1.000000 0.000000", 0, 1, "NewDecalData", true );

which works, but I need to manually change the transform to 0.0 -1.0 0.0 again after I start the level.

Two questions. Am I doing something wrong when using the decal editor/world editor to create the decal? If not, then what could be wrong. Secondly, why to I have to rotate the decal when I clearly add it (using the decalManagerAddDecal) with the correct rotational information?

Thanks!